- The USD / MXN between the optimism in markets and the rise of the dollar.
- Correction from levels above 22.00 finds support around 21.20.
USD / MXN is rising modestly on Tuesday, underpinned by a stronger dollar in the market, as Treasury yields rally.or. The cross fell to 21.18 and then rebounded. It is trading at 21.28, at the high of the day, with a very short-term bullish tone, but still within a lateral channel.
The good tone of the equity markets, in the face of fewer fears about the Omicron variant of the coronavirus, economic data from China and liquidity injection measures from the government, boosted the stock markets and riskier assets.
The increases in the Mexican peso were limited and it is now in negative territory against the dollar. The greenback is favored by the rebound in Treasury yields ahead of the Federal Reserve meeting next week.
A positive data that was known in Mexico on Monday was the rise in the index of Consumer Confidence measured by Inegi, which registered an advance in November to 45.8, the highest reading since March 2019. The key figure for the week will be Thursday with the consumer price index for November, which would exceed 7%, further complicating the panorama of the Bank of Mexico.
In the US, Friday will also be the key data day with the inflation report, one of the last strong data before the Fed meeting.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
